Dividend – NBC Institute

ATAX – May 2019 – L3 – Q5b – Double Taxation Reliefs and Credits

State provisions on business profits, dividends, and director's fees under double taxation arrangements between countries.

Question

With respect to double taxation arrangements, state precisely the provisions on the following:

i. Business profits not arising through a permanent establishment. (2 Marks)
ii. Dividend derived by one company resident in one country from another company resident in another country.
iii. Directors’ fees and other similar payments derived by a resident of a country in his capacity as a director of a company which is a resident of another country.

Answer

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Tags: Business Profits, Directors’ Fees, Dividend, Double Taxation, Tax treaties
Level: Level 3

Topic: Double Taxation Reliefs and Credits

FA – Nov 2012 – L1 – SA – Q12 – Financial Statements Preparation

Identifying what is not found in the statement of changes in equity.

Question

Which of the following is NOT found in the Statement of Changes in Equity of a company?

A. Dividend paid to equity shareholders
B. Proceeds from an issue of ordinary shares
C. Proposed dividend
D. Profit for the year
E. Share premium on fresh issue of shares

Answer

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Tags: Dividend, Equity, Shares
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2012

TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

Question

ABCEE Limited has been in the business of clearing and forwarding in Nigeria since 2007. The company has a standing policy of declaring dividends to the shareholders and has continued to do so despite the dwindling business activities in recent years. The following information was extracted from the ABCEE Limited’s income tax returns submitted to the Federal Inland Revenue Service for the 2016 year of assessment:

Description	Amount (N)
Total profit per 2016 tax computation	10,899,000
Tax assessed based on total profit @ 30%	3,269,700
Dividend declared	14,000,000

Required:

As the desk officer in charge of ABCEE Limited, compute the revised tax liability of the company in line with Section 19 of the Companies Income Tax Act Cap C21 LFN 2004 (as amended).

Answer

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Tags: Companies Income Tax, Dividend, Section 19, Tax Liability
Level: Level 2

Topic: Companies Income Tax (CIT)
Series: MAY 2019

BMF – Nov 2022 – L1 – SA – Q19 – Basics of Business Finance and Financial Markets Basics of Business Finance and Financial Markets

This question asks which factor increases shareholders' wealth alongside dividends.

Question

Shareholders’ wealth could be increased by dividend payments and:
A. Profitability
B. High share price
C. Interest
D. Surplus
E. Productivity

Answer

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Tags: Dividend, Financial management, Shareholders' Wealth
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2022

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

Question

Zealow Ltd, a car battery dealer, holds 26% voting power of Aboye Ltd, an energy and power distribution company. Both companies are resident in Ghana. Aboye Ltd declared a dividend, and the portion of the dividend that should be credited to the accounts of Zealow Ltd is GH¢78,900.

Required:
Determine the taxes payable, if any, and comment on the treatment of dividend to Zealow Ltd.
(5 marks)

Answer

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Tags: Corporate Tax, Dividend, Resident companies, Tax exemption
Level: Level 2

Topic: Corporate Tax Liabilities
Series: MAY 2020

PT – July 2023 – L2 – Q5a – Withholding Tax Administration

Calculate taxes and determine whether each is final based on various transactions provided.

Question

The following information is available to you as a tax consultant:

Description	Amount (GH¢)
Dividend paid to resident person	100,000
Dividend paid to non-resident person	200,000
Payment of goods to resident person	300,000
Payment of goods to non-resident person	400,000
Rent – residential property	150,000
Rent – commercial property	300,000
Natural Resource Payment	1,000,000
Management and Technical Service fees to non-resident	400,000
Interest paid to resident financial institution	20,000,000
Royalty paid to non-resident person	400,000

Required: Compute taxes from the above information and indicate whether the tax is final or not final.

Answer

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Tags: Dividend, Final Tax, Goods payment, Non-resident, Rent, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: JULY 2023

PT – May 2021 – L2 – Q4b – Corporate Tax Liabilities

Compute the tax payable by Fridays Ltd and explain the treatment of rental income and dividends.

Question

Fridays Ltd is a resident company. It provides cleaning services across the country. The following is available from its tax returns for the 2020 year of assessment.

Other relevant information:

The dividend was received from Z Ltd, a resident company where Fridays Ltd has 27% shares.

Required:
i) Compute the tax payable assuming its tax rate is 25%. (6 marks)
ii) Explain the treatment of the following:

Rental income (1 mark)
Dividend (1 mark)

Answer

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Tags: Corporate Tax, Dividend, Rental Income, Treasury bills
Level: Level 2

Topic: Corporate Tax Liabilities
Series: MAY 2021

AT – Nov 2017 – L3 – Q5b – Business income – Corporate income tax

Computing loss to be carried forward and discussing dividend tax treatment.

Question

Kofas Ltd is a mining company incorporated in Ghana. In the 2016 year of assessment, the company furnished the Ghana Revenue Authority with the following:

Item	GH¢
Revenue	10,000,000
Cost	2,500,000
Gross Profit	7,500,000
Operating expenses	8,100,000
Net Profit	(600,000)

Additional Information:

Foopo Ltd paid a dividend of GH¢50,000 to Kofas Ltd, which was included in the revenue. Kofas Ltd holds 25% of the shares in Foopo Ltd.
The operating expenses of GH¢8,100,000 include the following:
- Filing penalties: GH¢1,000
- Capital work in progress: GH¢200,000
- Depreciation: GH¢100,000
It was agreed with the Ghana Revenue Authority that the capital allowance for the 2016 year of assessment would be GH¢300,000. This allowance is yet to be factored into the computation.

Required:
i) Compute the loss to be carried forward. (5 marks)
ii) Comment on the tax treatment of the dividend paid by Foopo Ltd. (2 marks)
iii) How is unrelieved loss in the mining sector treated? (1 mark)
iv) Under what circumstances will a dividend from petroleum operations be paid to the Government of Ghana? (2 marks)

Answer

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Tags: Dividend, Loss carry forward, Petroleum Tax, Tax
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2017

ATAX – May 2019 – L3 – Q5b – Double Taxation Reliefs and Credits

State provisions on business profits, dividends, and director's fees under double taxation arrangements between countries.

Question

With respect to double taxation arrangements, state precisely the provisions on the following:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Profits, Directors’ Fees, Dividend, Double Taxation, Tax treaties
Level: Level 3

Topic: Double Taxation Reliefs and Credits

FA – Nov 2012 – L1 – SA – Q12 – Financial Statements Preparation

Identifying what is not found in the statement of changes in equity.

Question

Which of the following is NOT found in the Statement of Changes in Equity of a company?

A. Dividend paid to equity shareholders
B. Proceeds from an issue of ordinary shares
C. Proposed dividend
D. Profit for the year
E. Share premium on fresh issue of shares

Answer

Find Related Questions by Tags, levels, etc.

Tags: Dividend, Equity, Shares
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2012

TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

Question

Description	Amount (N)
Total profit per 2016 tax computation	10,899,000
Tax assessed based on total profit @ 30%	3,269,700
Dividend declared	14,000,000

Required:

As the desk officer in charge of ABCEE Limited, compute the revised tax liability of the company in line with Section 19 of the Companies Income Tax Act Cap C21 LFN 2004 (as amended).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Companies Income Tax, Dividend, Section 19, Tax Liability
Level: Level 2

Topic: Companies Income Tax (CIT)
Series: MAY 2019

BMF – Nov 2022 – L1 – SA – Q19 – Basics of Business Finance and Financial Markets Basics of Business Finance and Financial Markets

This question asks which factor increases shareholders' wealth alongside dividends.

Question

Shareholders’ wealth could be increased by dividend payments and:
A. Profitability
B. High share price
C. Interest
D. Surplus
E. Productivity

Answer

Find Related Questions by Tags, levels, etc.

Tags: Dividend, Financial management, Shareholders' Wealth
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2022

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

Question

Required:
Determine the taxes payable, if any, and comment on the treatment of dividend to Zealow Ltd.
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Dividend, Resident companies, Tax exemption
Level: Level 2

Topic: Corporate Tax Liabilities
Series: MAY 2020

PT – July 2023 – L2 – Q5a – Withholding Tax Administration

Calculate taxes and determine whether each is final based on various transactions provided.

Question

The following information is available to you as a tax consultant:

Description	Amount (GH¢)
Dividend paid to resident person	100,000
Dividend paid to non-resident person	200,000
Payment of goods to resident person	300,000
Payment of goods to non-resident person	400,000
Rent – residential property	150,000
Rent – commercial property	300,000
Natural Resource Payment	1,000,000
Management and Technical Service fees to non-resident	400,000
Interest paid to resident financial institution	20,000,000
Royalty paid to non-resident person	400,000

Required: Compute taxes from the above information and indicate whether the tax is final or not final.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Dividend, Final Tax, Goods payment, Non-resident, Rent, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: JULY 2023

PT – May 2021 – L2 – Q4b – Corporate Tax Liabilities

Compute the tax payable by Fridays Ltd and explain the treatment of rental income and dividends.

Question

Fridays Ltd is a resident company. It provides cleaning services across the country. The following is available from its tax returns for the 2020 year of assessment.

Other relevant information:

The dividend was received from Z Ltd, a resident company where Fridays Ltd has 27% shares.

Required:
i) Compute the tax payable assuming its tax rate is 25%. (6 marks)
ii) Explain the treatment of the following:

Rental income (1 mark)
Dividend (1 mark)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Dividend, Rental Income, Treasury bills
Level: Level 2

Topic: Corporate Tax Liabilities
Series: MAY 2021

AT – Nov 2017 – L3 – Q5b – Business income – Corporate income tax

Computing loss to be carried forward and discussing dividend tax treatment.

Question

Kofas Ltd is a mining company incorporated in Ghana. In the 2016 year of assessment, the company furnished the Ghana Revenue Authority with the following:

Item	GH¢
Revenue	10,000,000
Cost	2,500,000
Gross Profit	7,500,000
Operating expenses	8,100,000
Net Profit	(600,000)

Additional Information:

Foopo Ltd paid a dividend of GH¢50,000 to Kofas Ltd, which was included in the revenue. Kofas Ltd holds 25% of the shares in Foopo Ltd.
The operating expenses of GH¢8,100,000 include the following:
- Filing penalties: GH¢1,000
- Capital work in progress: GH¢200,000
- Depreciation: GH¢100,000
It was agreed with the Ghana Revenue Authority that the capital allowance for the 2016 year of assessment would be GH¢300,000. This allowance is yet to be factored into the computation.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Dividend, Loss carry forward, Petroleum Tax, Tax
Level: Level 3

Topic: Business income - Corporate income tax
Series: NOV 2017

Question Tag: Dividend

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ATAX – May 2019 – L3 – Q5b – Double Taxation Reliefs and Credits

State provisions on business profits, dividends, and director's fees under double taxation arrangements between countries.

You're reporting an error for "ATAX – May 2019 – L3 – Q5b – Double Taxation Reliefs and Credits"

FA – Nov 2012 – L1 – SA – Q12 – Financial Statements Preparation

Identifying what is not found in the statement of changes in equity.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q12 – Financial Statements Preparation"

TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

You're reporting an error for "TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)"

BMF – Nov 2022 – L1 – SA – Q19 – Basics of Business Finance and Financial Markets Basics of Business Finance and Financial Markets

This question asks which factor increases shareholders' wealth alongside dividends.

You're reporting an error for "BMF – Nov 2022 – L1 – SA – Q19 – Basics of Business Finance and Financial Markets Basics of Business Finance and Financial Markets"

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

You're reporting an error for "PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities"

PT – July 2023 – L2 – Q5a – Withholding Tax Administration

Calculate taxes and determine whether each is final based on various transactions provided.

You're reporting an error for "PT – July 2023 – L2 – Q5a – Withholding Tax Administration"

PT – May 2021 – L2 – Q4b – Corporate Tax Liabilities

Compute the tax payable by Fridays Ltd and explain the treatment of rental income and dividends.

You're reporting an error for "PT – May 2021 – L2 – Q4b – Corporate Tax Liabilities"

AT – Nov 2017 – L3 – Q5b – Business income – Corporate income tax

Computing loss to be carried forward and discussing dividend tax treatment.

You're reporting an error for "AT – Nov 2017 – L3 – Q5b – Business income – Corporate income tax"

ATAX – May 2019 – L3 – Q5b – Double Taxation Reliefs and Credits

State provisions on business profits, dividends, and director's fees under double taxation arrangements between countries.

You're reporting an error for "ATAX – May 2019 – L3 – Q5b – Double Taxation Reliefs and Credits"

FA – Nov 2012 – L1 – SA – Q12 – Financial Statements Preparation

Identifying what is not found in the statement of changes in equity.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q12 – Financial Statements Preparation"

TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)

Calculate profit sharing for the partners of Obi Consults.

You're reporting an error for "TAX – May 2019 – L2 – Q1b – Companies Income Tax (CIT)"

BMF – Nov 2022 – L1 – SA – Q19 – Basics of Business Finance and Financial Markets Basics of Business Finance and Financial Markets

This question asks which factor increases shareholders' wealth alongside dividends.

You're reporting an error for "BMF – Nov 2022 – L1 – SA – Q19 – Basics of Business Finance and Financial Markets Basics of Business Finance and Financial Markets"

PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities

Determines the tax treatment for dividends received by a resident company holding significant voting power in another resident company.

You're reporting an error for "PT – May 2020 – L2 – Q2e – Corporate Tax Liabilities"

PT – July 2023 – L2 – Q5a – Withholding Tax Administration

Calculate taxes and determine whether each is final based on various transactions provided.

You're reporting an error for "PT – July 2023 – L2 – Q5a – Withholding Tax Administration"

PT – May 2021 – L2 – Q4b – Corporate Tax Liabilities

Compute the tax payable by Fridays Ltd and explain the treatment of rental income and dividends.

You're reporting an error for "PT – May 2021 – L2 – Q4b – Corporate Tax Liabilities"

AT – Nov 2017 – L3 – Q5b – Business income – Corporate income tax

Computing loss to be carried forward and discussing dividend tax treatment.

You're reporting an error for "AT – Nov 2017 – L3 – Q5b – Business income – Corporate income tax"

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